Michael Dell Explains How Company Will Handle VMware

By Chris Preimesberger  |  Posted 2015-10-19 Print this article Print

'VMware is a crown jewel of the EMC federation. Our intent is only to continue to help it thrive, innovate and grow.' -- Michael Dell

Michael Dell filed a blog post Oct. 19, one week after announcing the largest, most comprehensive IT merger in history: the acquisition of EMC, VMware and the rest of the vast consoritum of companies that made up the EMC empire.

Dell has always wanted his company to be the No. 1 one-stop shop for enterprise technology buyers. Now he's got it. With this acquisition, Dell is the world's de facto largest and most complete vendor for IT goods and services.

One of the main questions about the transaction involved the status of VMware, which, while 80 percent owned by EMC, was operated as an independent entity by the mothership. Would VMware continue to be run in this same manner by the new owner, or would there be changes?

Dell himself decided to explain his company's plans in the blog post. To save you the trouble of opening another window, here is the entirety of Dell's statement:

"Given our recent announcement to acquire EMC, I thought it would be helpful to share some of my thoughts and intentions about VMware, and our plans following the close of the transaction," Dell wrote.

"Since I founded Dell more than 31 years ago, the company has been committed to a heterogeneous and open architecture that prioritizes customer choice first and foremost. We intend that once combined, Dell and EMC will continue to offer choice and multiple partner offerings as we always have and always will.

"VMware is an amazing company filled with very talented people creating innovative software and solutions that are leading the way in a cloud-based, connected world. It thrives on a vibrant ecosystem in its VMware Partner Network of OEM partners, Systems Integrators, Solution Providers, Resellers and of course hundreds of thousands of customers around the world.

"We intend for VMware to remain an independent public company. Further, we believe it is very important to maintain VMware's successful business model supporting an open and independent ecosystem. We do not plan to do anything proprietary with VMware as regards Dell or EMC, nor place any limitations on VMware’s ability to partner with any other company.

"Until the transaction closes, Dell and EMC will continue to operate as separate companies and compete in the marketplace.

"Once the transaction closes, we plan to handle VMware the same way as EMC by keeping VMware independent, leaving VMware free to continue using its cash flow to invest in its business and to continue its committed relationships with its VMware Partner Network.  Lots of customers use VMware together with many other OEM products and solutions. VMware will remain committed to its partners and making it easy for customers to use its products on any hardware or platform that they desire.

"VMware is a crown jewel of the EMC federation. Our intent is only to continue to help it thrive, innovate and grow, as an independent company with an independent and open ecosystem.

Best, Michael"

There you have it. Investors and potential investors can rest at ease knowing that nothing will be changing—for the time being, anyway.


Chris Preimesberger

Chris Preimesberger is Editor of Features & Analysis at eWEEK. Twitter: @editingwhiz
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